Tuesday 21 May 2019
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The News - 6 days ago

If tax amount not paid in time: Amnesty scheme slaps 10 to 40pc default surcharge

ISLAMABAD: The tax amnesty scheme has slapped default surcharge in the range of 10 to 40 percent up to June 2020 on those who will avail themselves of the scheme by filing declaration till its expiry date of June 30, 2019 but would not bother to deposit the due tax amount.The Presidential ordinance for Asset Declaration Scheme 2019 promulgated on Wednesday stated that the amount of tax shall be increased by default surcharge by amount percentage. If the tax is paid after June 30, 2019 and on or before September 30, 2019, the rate of default surcharge would be 10 percent of the tax amount.If the tax is paid after September 30, 2019 and on or before December 31, 2019, the rate of default surcharge would be 20 percent of the tax amount. If the tax is paid after December 31, 2019 and on or before March 31, 2020, the rate of default surcharge would be 30 percent of the tax amount and if the tax is paid after March 31, 2020 and on or before June 30, 2020, the rate of default surcharge would be 40 percent of the tax amount.When Chairman FBR Shahbar Zaidi was contacted and asked what would happen if someone got loan from banks and availed this scheme by depositing amount into bank account in order to reduce future tax liabilities, he replied that the FBR could not bar him or her for availing this scheme. To another question about non issuance of rules for making this scheme operational, he said that the rules were ready and would be issued on Thursday (today). To another questions if Association of Persons (AOPs) or any other established joint business could one of them avail this scheme, he replied yes .The Assets Declaration Ordinance 2019 has bound the declarant of foreign liquid assets that repatriated foreign liquid asset is deposited into his own Pak rupee account or his foreign currency bank account in Pakistan or is invested into Pakistan Banao Certificates or any foreign currency denominated bonds issued by the federal government. The fair market value of foreign assets shall be determined at the exchange rate prevalent on the date of declaration under the Assets Declaration Ordinance 2019.The conditions for declarations, the declaration made shall be valid if cash held by the declarant is deposited into a bank account in the manner specified at the time of declaration and is retained in such bank account up to June 30, or the foreign currency held in Pakistan declared is deposited into declarant s own foreign currency bank account at the time of declaration and is retained in such account till June 30, or the repatriated foreign liquid asset is deposited into declarant s own Pak rupee account or his foreign currency bank account in Pakistan or is invested into Pakistan Banao Certificates or any foreign currency denominated bonds issued by the federal gove or foreign liquid assets not repatriated to Pakistan shall be deposited in declarant s foreign bank account on or before the 30th June, 2019.The rates of tax imposed on undisclosed assets, sales and expenditures would be 4 percent on all assets except domestic immovable prop rate of tax would be 1.5 percent on domestic immovable prop rates of tax would be 6 percent on foreign liquid assets not repat rate of tax would be 4 percent on unexplained expenditure and rate of tax would be 2 percent on undisclosed sales.The value of domestic immovable properties shall be the price not less than 150 percent of the FBR notified 150% of the DC value, where FBR value has not been notified or the FBR value is less than the DC or 150% of FBR value notified under sub-section (4) of section 68 of the Income Tax Ordinance, 2001 for land and 150% of DC value for constructed property, where FBR value has not been notified for constructed property. In case of all other assets, the value shall be the price which the assets would ordinarily fetch on sale in the open market on the date of declaration but in no case shall be less than the cost of acquisition of the asset.


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